Partnership Account, As the business expands, one needs more capital and a bigger number of individuals to manage the business and share its risks. when two or more persons close to establishing business and share its profits. On many issues affecting the distribution of profits, there might not be any specific agreement between the partners. Calculation of capital interest & interest on drawings and maintenance of partners capital accounts have their own peculiarities. Not only that a spread of adjustments are required on the death of a partner or when a replacement partner is admitted then on.
When two or…
A company raises its capital by means of an issue of shares. But the funds raised by the difficulty of shares are seldom capable meet their future financial needs of a corporation. Hence, most companies address raising long-term funds also through debentures which are issued either through the route of personal placement or by offering an equivalent to the general public. The finances raised through debentures also are referred to as long-term debt. It deals with the accounting treatment of issue and redemption of debentures and other related aspects.
The word ‘debenture’ has been derived from the Latin word ‘debere’…
A company is an artificial legal person i.e. it is a creation of law. It comes into existence when it is registered by following the procedures laid down by the Companies Act, 2013.
Formation of a Company means registering or incorporating a company with the Registrar of companies in the state where the company’s registered office is to be located.
There are five types of companies in accounting and each one have different categories. Now we explain all separately as under the following:
1. On the basis of incorporation
a) Statutory company
b) Registered company
2. On the basis of the number of members
a) Private company
b) Public company
c) One person company
3. On the basis of liability of members
a) Company limited by shares
b) Company limited by guarantee
c) Unlimited liability company
4. On the basis of control
a) Holding company
b) Subsidiary company
5. Other Types
a) Government of company
b) Foreign company
c) Dormant company
d) Listed company
e) Small company
f) Associate company
g) Company not for profit
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The sourcing of Accounting software is an integral part of the computerized accounting system. An important factor to be considered before acquiring accounting software is the accounting expertise of people responsible in the organization for accounting work. People, not computers, are responsible for accounting. The need for accounting software arises in two situations : (a) when the computerized accounting is implemented to exchange the manual system or (b) when the present computerized system must get replaced with a replacement one insight of adjusting needs.
Every Computerized accounting is implemented to perform the accounting activity (recording and storing of accounting data)…
In order to remain competitive, organizations depend heavily on Information Systems. Management Information System (MIS) is used as the most common form of information system. A management information system (MIS) is a system that provides the information necessary to make decisions and manage an organization effectively. Accounting Information System (AIS) identifies, collects, processes, and communicates economic information about an entity to a wide variety of users. Such information is organized in a manner that correct decisions can be based on it. Every accounting system is essentially a part of the Accounting Information System (AIS) which, in turn, is a part…
A computer is a device, which is capable of performing a spread of operations as directed by a group of instructions. This set of instructions has named a program.
Computer technology and its usage have registered a significant development during the last three decades. Historically, computers have been used effectively in science and technology to solve complex computational and logical problems. They have also been used for carrying out economic planning and forecasting processes. Recently, modern-day computers have made their presence felt in business and industry. The most important impact of computers has been on how data is stored and…
Ledger Posting in Accounting is a very important role in maintaining accounts books or record of the transaction. At the time of preparing accounts in any organization (business), to prepare different ledger accounts and also to find balance in each account is very important.
In view of the above information, separate accounts are prepared for the specific information from the accounting entries. The different types of accounts are prepared in a separate book, which is known as a Ledger Book.
The purpose of accounting is not only limited to recording monetary receipts and payment. On the basis of the summary…
For centuries, Basic Terms in Accounting the function of accounting has been altering with the modifications in economic improvement and increasing societal demands. It describes and analyses a mass of facts of an employer via measurement, classification and summarization, and reduces these date into reviews and statements, which show the monetary situation and outcomes of operations of that enterprise. Hence, it is viewed as the language of business. It additionally performs the carrier exercise by providing quantitative economic data that helps the customers in a variety of ways. …
Characteristics and objective are the attributes of the accounting information such as tend to enhance its understandability and usefulness & useful information to the interested group of users, both external and internal.
Qualitative characteristics of accounting are the attributes of accounting info that tend to strengthen its comprehensibility and utility. to assess whether accounting info is named helpful, it should possess the characteristics of dependability, relevance, comprehensibility and equivalence.
As a records system, the elemental goal of accounting is to grant useful information to the fascinated crew of users, each exterior and internal. The necessary information, especially in the case…
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